Disgraced financier Gary Hexley is at the centre of another financial crash which has left investors in an Isle of Man fund out of pocket to the tune of more than £1.5 million.

Hexley is a former director of the Greenfield International Property Fund, which collapsed into liquidation in August last year, the Mail can reveal.

The liquidator appointed to recoup money for investors warned they were unlikely to see a penny back from the assets of the Isle of Man fund, which was based on loans to development companies for three separate Birmingham property deals. The collapse of the Greenfield International Property Fund virtually mirrors the separate demise of Sutton Coldfield-based Greenfield International, which left 237 creditors facing a shortfall of nearly £2.1 million.

Recently, Hexley was arrested on suspicion of duping his clients.

He and another individual were quizzed by officers from the Financial Services Authority with the assistance of West Midlands Police.

Hexley, who has not been charged, could not be contacted for comment.

George Noble, liquidator of Greenfield International Property Fund, claimed Hexley had been a director of the fund, described as “only suitable for experienced investors”.

“People seem to have been persuaded by Hexley to invest in this fund – they all went in through intermediaries,” he said. “Hexley seems to have been the one bringing the money in.”

Mr Noble said total investments in the fund amounted to around £2.6 million, involving up to 25 individuals, but various payments had left 13 with a shortfall.

“These 13 investors are facing a total loss,” he said.

“They put in £1.5 million and are not likely to get anything back.” Nine other former investors started to redeem their investments and are still owed £680,000.

Mr Noble said the only assets were secondary finance loans provided by the Isle of Man fund for three separate property deals in Birmingham.

One £400,000 loan had been written off, leaving two others, for £910,000 and £866,000 respectively, but the properties are mortgaged to banks and there is little equity.